With everything going on in the economy today, the first question many people ask me is whether Real Estate is still a good investment. They want to know if they should buy now or wait until prices drop even further. After so many years of the Toronto real estate market booming, people are understandably concerned with the recent numbers which indicate a drop in property sales and prices!
I created this comprehensive Guide to Buying so you can be prepared – prepared to think about buying a home, prepared to afford your home, prepared to buy it and move into it. My goal is for you to have an edge over the many buyers out there who are making decisions based on incomplete information, lack of experience and even desperation. My whole business is based on making sure you are thrilled with both the process of finding a home and the end result: owning a piece of Toronto you really love.
So, I always tell my clients that there are many good reasons for buying a home, even in today’s economic climate – and it ultimately depends on what’s best for you. Of course, before getting into looking for a home, we’ll sit down and discuss your situation and craft a plan to get you to your ultimate goal. Most buyers do have some main objectives in common. Do any of the following examples remind you of your own reasons for considering home ownership?
PROBLEM: Mr. and Mrs. Doe moved into their home five years ago and they loved it, but they’re ready to start a family and there just isn’t enough space…
SOLUTION: Move up buyers, whose current homes no longer meet their requirements for space and amenities, don’t have to wait to move up. With excellent mortgage rates and more reasonable prices than we’ve seen in the last ten years, spacious homes are now more affordable than ever. I will ensure their current homes are sold in the least amount of time for the best possible price so they can fully take advantage of current market conditions.
PROBLEM: Mr. and Mrs. Smith own a big house in a mature North Toronto neighborhood, but now that their kids have moved out, they feel like they’re ‘rattling around’ in all that space…
SOLUTION: Down-sizers are benefitting from the softer condo market by getting bigger suites in better buildings at great prices, with lots of incentives from builders such as free upgrades, free parking and even trips around the world!
PROBLEM: Susan and Joe wanted to live together before getting married, so they left their separate apartments and moved in to a rental downtown to be closer to their jobs. Now they want to make some renovations in the unit to accommodate a painting studio for Susan, but the landlord won’t allow changes.
SOLUTION: First time buyers can now carry many properties for the same cost as renting, while building equity for their futures. And freehold ownership means the right to make alterations that will truly make their household a home.
Of course, if you are thinking of buying, it’s crucial to examine your own personal and financial circumstances to determine whether now is the right time for you. Here are the key points to consider:
- What sort of monthly payments (mortgage, taxes, utilities etc.) can I afford?
- How big is my downpayment?
- Do I have funds set aside for closing costs?
- Is my job stable?
- Are my needs (job change, starting a family, etc.) likely to change in the next 12-24 months?
- Do I have time and energy for this process? (looking for homes, notice given to landlord, baby on the way etc.)
- Do I have a home that I want to sell first?